Fair Value Measurements (Tables)

9 Months Ended

Sep. 30, 2020

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of September 30, 2020
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
Asset-backed-securities ("ABS")	$	1,490	$	—	$	1,490	$	—
Collateralized loan obligations ("CLOs")	2,449		—		2,308		141
Commercial mortgage-backed securities ("CMBS")	4,444		—		4,352		92
Corporate	19,416		—		18,420		996
Foreign government/government agencies	984		—		984		—
Municipal	9,310		—		9,304		6
Residential mortgage-backed securities ("RMBS")	4,548		—		4,097		451
U.S. Treasuries	1,403		381		1,022		—
Total fixed maturities	44,044		381		41,977		1,686
Equity securities, at fair value	819		352		398		69
Derivative assets
Credit derivatives	11		—		11		—
Interest rate derivatives	1		—		1		—
Total derivative assets [1]	12		—		12		—
Short-term investments	3,399		3,176		209		14
Total assets accounted for at fair value on a recurring basis	$	48,274	$	3,909	$	42,596	$	1,769
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Credit derivatives	$	1	$	—	$	1	$	—
Foreign exchange derivatives	$	6	$	—	$	6	$	—
Interest rate derivatives	(79)		—		(79)		—
Total derivative liabilities [2]	(72)		—		(72)		—
Total liabilities accounted for at fair value on a recurring basis	$	(72)	$	—	$	(72)	$	—

Assets and (Liabilities) Carried at Fair Value by Hierarchy Level as of December 31, 2019
	Total		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Assets accounted for at fair value on a recurring basis
Fixed maturities, AFS
ABS	$	1,476	$	—	$	1,461	$	15
CLOs	2,183		—		2,088		95
CMBS	4,338		—		4,329		9
Corporate	17,396		—		16,664		732
Foreign government/government agencies	1,123		—		1,120		3
Municipal	9,498		—		9,498		—
RMBS	4,869		—		4,309		560
U.S. Treasuries	1,265		330		935		—
Total fixed maturities	42,148		330		40,404		1,414
Fixed maturities, FVO	11		—		11		—
Equity securities, at fair value	1,657		1,401		183		73
Derivative assets
Credit derivatives	11		—		11		—
Interest rate derivatives	1		—		1		—
Total derivative assets [1]	12		—		12		—
Short-term investments	2,921		1,028		1,878		15
Total assets accounted for at fair value on a recurring basis	$	46,749	$	2,759	$	42,488	$	1,502
Liabilities accounted for at fair value on a recurring basis
Derivative liabilities
Credit derivatives	$	(1)	$	—	$	(1)	$	—
Equity derivatives	(15)		—		—		(15)
Foreign exchange derivatives	(2)		—		(2)		—
Interest rate derivatives	(60)		—		(60)		—
Total derivative liabilities [2]	(78)		—		(63)		(15)
Contingent consideration [3]	(22)		—		—		(22)
Total liabilities accounted for at fair value on a recurring basis	$	(100)	$	—	$	(63)	$	(37)

[1]Includes derivative instruments in a net positive fair value position after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law.

[2]Includes derivative instruments in a net negative fair value position (derivative liability) after consideration of the accrued interest and impact of collateral posting requirements which may be imposed by agreements and applicable law.

[3]For additional information see the Contingent Consideration section below.

Fair Value Inputs, Assets, Quantitative Information

Significant Unobservable Inputs for Level 3 - Securities
Assets accounted for at fair value on a recurring basis	Fair Value		Predominant Valuation Technique	Significant Unobservable Input	Minimum	Maximum	Weighted Average [1]	Impact of Increase in Input on Fair Value [2]
As of September 30, 2020
CLOs [3]	$	78	Discounted cash flows	Spread	414 bps	414 bps	414 bps	Decrease
CMBS [3]	$	13	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	275 bps	1,235 bps	1,188 bps	Decrease
Corporate [4]	$	866	Discounted cash flows	Spread	129 bps	972 bps	311 bps	Decrease
RMBS [3]	$	411	Discounted cash flows	Spread [6]	30 bps	590 bps	128 bps	Decrease
				Constant prepayment rate [6]	—%	11%	6%	Decrease [5]
				Constant default rate [6]	2%	6%	3%	Decrease
				Loss severity [6]	—%	100%	82%	Decrease
As of December 31, 2019
CLOs [3]	$	95	Discounted cash flows	Spread	246 bps	246 bps	246 bps	Decrease
CMBS [3]	$	1	Discounted cash flows	Spread (encompasses prepayment, default risk and loss severity)	9 bps	1,832 bps	161 bps	Decrease
Corporate [4]	$	633	Discounted cash flows	Spread	93 bps	788 bps	236 bps	Decrease
RMBS [3]	$	560	Discounted cash flows	Spread [6]	5 bps	233 bps	79 bps	Decrease
				Constant prepayment rate [6]	—%	11%	6%	Decrease [5]
				Constant default rate [6]	1%	6%	3%	Decrease
				Loss severity [6]	—%	100%	70%	Decrease

[1]The weighted average is determined based on the fair value of the securities.

[2]Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table.

[3]Excludes securities for which the Company bases fair value on broker quotations.

[4]Excludes securities for which the Company bases fair value on broker quotations; however, included are broker priced lower-rated private placement securities for which the Company receives spread and yield information to corroborate the fair value.

[5]Decrease for above market rate coupons and increase for below market rate coupons.

[6]Generally, a change in the assumption used for the constant default rate would have been accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for constant prepayment rate and would have resulted in wider spreads

Significant Unobservable Inputs for Level 3 - Derivatives [1]
	Fair Value		Predominant Valuation  Technique	Significant Unobservable Input	Minimum		Maximum		Weighted Average [2]		Impact of  Increase in Input  Value [3]
As of December 31, 2019
Equity options	$	(15)	Option model	Equity volatility	13	%	28	%	17	%	Increase

[1] As of September 30, 2020, the fair values of the Company's level 3 derivatives were less than $1 and are excluded from the table.

[2]The weighted average is determined based on the fair value of the derivatives.

[3]Conversely, the impact of a decrease in input would have the opposite impact to the fair value as that presented in the table. Changes are based on long positions, unless otherwise noted. Changes in fair value will be inversely impacted for short positions.

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block]

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended September 30, 2020
				Total realized/unrealized gains (losses)
		Fair value as of June 30, 2020		Included in net income [1]		Included in OCI [2]		Purchases		Settlements		Sales		Transfers into Level 3 [3]		Transfers out of Level 3 [3]		Fair value as of September 30, 2020
Assets
Fixed Maturities, AFS
	ABS	$	23	$	—	$	—	$	—	$	—	$	—	$	—	$	(23)	$	—
	CLOs	99		—		1		63		(3)		—		—		(19)		141
	CMBS	20		—		2		66		(1)		—		5		—		92
	Corporate	1,109		1		19		45		(62)		—		22		(138)		996
	Municipal	—		(3)		2		—		—		—		7		—		6
	RMBS	479		—		2		40		(48)		—		—		(22)		451
Total Fixed Maturities, AFS		1,730		(2)		26		214		(114)		—		34		(202)		1,686
Equity Securities, at fair value		66		—		—		3		—		—		—		—		69
Short-term investments		14		—		—		—		—		—		—		—		14
Total Assets		$	1,810	$	(2)	$	26	$	217	$	(114)	$	—	$	34	$	(202)	$	1,769
Liabilities
Total Liabilities		$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—	$	—

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Nine Months Ended September 30, 2020
				Total realized/unrealized gains (losses)
		Fair value as of January 1, 2020		Included in net income [1]		Included in OCI [2]		Purchases		Settlements		Sales		Transfers into Level 3 [3]		Transfers out of Level 3 [3]		Fair value as of September 30, 2020
Assets
Fixed Maturities, AFS
	ABS	$	15	$	—	$	(1)	$	43	$	—	$	—	$	—	$	(57)	$	—
	CLOs	95		—		(1)		82		(16)		—		—		(19)		141
	CMBS	9		—		2		79		(3)		—		5		—		92
	Corporate	732		(31)		—		161		(126)		(27)		481		(194)		996
	Foreign Govt./Govt. Agencies	3		—		—		—		—		—		—		(3)		—
	Municipal	—		(3)		2		—		—		—		7		—		6
	RMBS	560		—		(10)		66		(136)		(7)		—		(22)		451
Total Fixed Maturities, AFS		1,414		(34)		(8)		431		(281)		(34)		493		(295)		1,686
Equity Securities, at fair value		73		(10)		—		6		—		—		—		—		69
Short-term investments		15		—		—		—		(1)		—		—		—		14
Total Assets		$	1,502	$	(44)	$	(8)	$	437	$	(282)	$	(34)	$	493	$	(295)	$	1,769
Liabilities
Contingent Consideration		(22)		12		—		—		10		—		—		—		—
Derivatives, net [4]
Equity	Equity	(15)		36		—		—		—		(21)		—		—		—
Total Derivatives, net [4]		(15)		36		—		—		—		(21)		—		—		—
Total Liabilities		$	(37)	$	48	$	—	$	—	$	10	$	(21)	$	—	$	—	$	—

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Three Months Ended September 30, 2019
				Total realized/unrealized gains (losses)
		Fair value as of June 30, 2019		Included in net income [1]		Included in OCI [2]		Purchases		Settlements		Sales		Transfers into Level 3 [3]		Transfers out of Level 3 [3]		Fair value as of September 30, 2019
Assets
Fixed Maturities, AFS
	ABS	$	5	$	—	$	—	$	—	$	—	$	—	$	—	$	(5)	$	—
	CLOs	286		—		—		92		(8)		—		—		(74)		296
	CMBS	35		—		—		10		(1)		—		—		(24)		20
	Corporate	568		(3)		—		166		(7)		(4)		15		(12)		723
	Foreign Govt./Govt. Agencies	3		—		—		—		—		—		—		—		3
	RMBS	758		—		(3)		—		(51)		—		—		(90)		614
Total Fixed Maturities, AFS		1,655		(3)		(3)		268		(67)		(4)		15		(205)		1,656
Equity Securities, at fair value		72		(2)		—		—		—		—		—		—		70
Total Assets		$	1,727	$	(5)	$	(3)	$	268	$	(67)	$	(4)	$	15	$	(205)	$	1,726
Liabilities
Contingent Consideration		(21)		—		—		—		—		—		—		—		(21)
Derivatives, net [4]
	Equity	(3)		(2)		—		—		—		—		—		—		(5)
Total Derivatives, net [4]		(3)		(2)		—		—		—		—		—		—		(5)
Total Liabilities		$	(24)	$	(2)	$	—	$	—	$	—	$	—	$	—	$	—	$	(26)

Fair Value Rollforwards for Financial Instruments Classified as Level 3 for the Nine Months Ended September 30, 2019
				Total realized/unrealized gains (losses)
		Fair value as of January 1, 2019		Included in net income [1]		Included in OCI [2]		Purchases		Settlements		Sales		Transfers into Level 3 [3]		Transfers out of Level 3 [3]		Fair value as of September 30, 2019
Assets
Fixed Maturities, AFS
	ABS	$	10	$	—	$	—	$	5	$	(1)	$	—	$	—	$	(14)	$	—
	CLOs	100		—		—		329		(18)		(6)		—		(109)		296
	CMBS	12		—		1		34		(3)		—		—		(24)		20
	Corporate	520		(4)		9		261		(13)		(68)		61		(43)		723
	Foreign Govt./Govt. Agencies	3		—		—		—		—		—		—		—		3
	RMBS	920		1		(5)		134		(163)		(35)		—		(238)		614
Total Fixed Maturities, AFS		1,565		(3)		5		763		(198)		(109)		61		(428)		1,656
Equity Securities, at fair value		77		(3)		—		9		—		(13)		—		—		70
Derivatives, net [4]
	Interest rate	1		(1)		—		—		—		—		—		—		—
Total Derivatives, net [4]		1		(1)		—		—		—		—		—		—		—
Total Assets		$	1,643	$	(7)	$	5	$	772	$	(198)	$	(122)	$	61	$	(428)	$	1,726
Liabilities
Contingent Consideration		(35)		(6)		—		—		20		—		—		—		(21)
Derivatives, net [4]
	Equity	3		(8)		—		—		—		—		—		—		(5)
Total Derivatives, net [4]		3		(8)		—		—		—		—		—		—		(5)
Total Liabilities		$	(32)	$	(14)	$	—	$	—	$	20	$	—	$	—	$	—	$	(26)

[1]Amounts in these columns are generally reported in net realized capital gains (losses). All amounts are before income taxes.

[2]All amounts are before income taxes.

[3]Transfers in and/or (out) of Level 3 are primarily attributable to the availability of market observable information and the re-evaluation of the observability of pricing inputs. Transfers into Level 3 for the nine months ended September 30, 2020, were primarily related to private securities that were priced using internal matrix pricing in the prior period, but changed to broker pricing in the current period.

[4]Derivative instruments are reported in this table on a net basis for asset (liability) positions and reported in the Condensed Consolidated Balance Sheets in other investments and other liabilities.

Changes in Unrealized Gains (Losses) for Financial Instruments Classified as Level 3 Still Held at End of Period
		Three Months Ended September 30,								Nine Months Ended September 30,
		2020		2019		2020		2019		2020		2019		2020		2019
		Changes in Unrealized Gain/(Loss) included in Net Income [1] [2]				Changes in Unrealized Gain/(Loss) included in OCI [3]				Changes in Unrealized Gain/(Loss) included in Net Income [1] [2]				Changes in Unrealized Gain/(Loss) included in OCI [3]
Assets
Fixed Maturities, AFS
	CLOs	—		—		1		—		—		—		(1)		1
	CMBS	—		—		2		—		—		—		2		—
	Corporate	(1)		(2)		17		—		(21)		(3)		1		8
	Foreign Govt./Govt. Agencies	—		—		—		—		—		—		—		1
	Municipal	(3)		—		2		—		(3)		—		2		—
	RMBS	—		—		2		(3)		—		—		(9)		(4)
Total Fixed Maturities, AFS		(4)		(2)		24		(3)		(24)		(3)		(5)		6
Equity Securities, at fair value		—		(2)		—		—		(9)		(2)		—		—
Derivatives, net
	Equity	—		—		—		—		—		—		—		—
	Interest rate	—		—		—		—		—		(1)		—		—
Total Derivatives, net		—		—		—		—		—		(1)		—		—
Short-term investments		—		—		—		—
Total Assets		$	(4)	$	(4)	$	24	$	(3)	$	(33)	$	(6)	$	(5)	$	6
Liabilities
Contingent Consideration		—		—		—		—		12		(6)		—		—
Derivatives, net
	Equity	—		(2)		—		—		—		(8)		—		—
Total Derivatives, net		—		(2)		—		—		—		(8)		—		—
Total Liabilities		$	—	$	(2)	$	—	$	—	$	12	$	(14)	$	—	$	—

[1]All amounts in these rows are reported in net realized capital gains (losses). All amounts are before income taxes.

[2]Amounts presented are for Level 3 only and therefore may not agree to other disclosures included herein.

[3]Changes in unrealized gain (loss) on fixed maturities, AFS are reported in changes in net unrealized gain on securities in the Condensed Consolidated Statements of Comprehensive Income. Changes in interest rate derivatives are reported in changes in net gain on cash flow hedging instruments in the Condensed Consolidated Statements of Comprehensive Income.

Schedule of Carrying Values and Estimated Fair Values of Debt Instruments

Financial Assets and Liabilities Not Carried at Fair Value
	September 30, 2020					December 31, 2019
	Fair Value Hierarchy Level	Carrying Amount [1]		Fair Value		Fair Value Hierarchy Level	Carrying Amount		Fair Value
Assets
Mortgage loans	Level 3	$	4,461	$	4,720	Level 3	$	4,215	$	4,350
Liabilities
Other policyholder funds and benefits payable	Level 3	711		$	712	Level 3	$	763	$	765
Senior notes [2]	Level 2	$	3,261	$	4,172	Level 2	$	3,759	$	4,456
Junior subordinated debentures [2]	Level 2	$	1,090	$	1,093	Level 2	$	1,089	$	1,153

[1]As of September 30, 2020, carrying amount of mortgage loans is net of ACL of $38.

[2]Included in long-term debt in the Condensed Consolidated Balance Sheets, except for current maturities, which are included in short-term debt.